Meurer & Potter Law Office, Denver, Colorado
Perhaps you’re a doctor, attorney, business owner or any kind of professional who is high-profile and has a high net worth. That means you have a lot to lose when faced with lawsuits, claims and creditors. At the Meurer & Potter Law Office, we can help you create a relatively new trust option called the Lockbox Trust, also known as a Domestic Asset Protection Trust (DAPT).
Your Lockbox Trust / DAPT is an irrevocable trust specifically designed to keep your assets out of the reach of aggressive creditors and other predatory parties. It also allows you, the grantor of the trust, to be named as beneficiary and receive disbursements. When setting up this option, you will simply need to name a trustee who will manage the trust. This can be a third party or a person you trust such as a spouse or relative.
At this point in time, only around a dozen states have statutes recognizing Lockbox Trusts. Colorado is not one of them just yet, which means that if a creditor decides to take their case to court, your DAPT may or may not provide the protection that it would in another state. However, when many creditors see that their target has a Lockbox Trust, they sometimes decide not to pursue a lawsuit at all. They may also be more willing to settle their dispute with you for a much lesser amount.
Some things to keep in mind are that a DAPT will not protect you from pre-existing creditors, only future creditors. And in cases such as child support, alimony, and tax evasion, your trust will not be able to provide you with any protections. Because the Lockbox Trust is a new option and not yet fully recognized by Colorado, it’s important to discuss your options with our attorneys at the Meurer & Potter Law Office in Denver. We’ll share our knowledge and help you determine if this trust is in your best interest.
Call or contact our offices today to schedule your free consultation: 303-991-3544